Based on an IMF employees assertion launched on December 22, 2025, El Salvador has made measurable progress on its reform program and is seeing sooner financial progress than earlier anticipated.
The IMF mentioned discussions on the second evaluate of the nation’s 40-month Prolonged Fund Facility program are ongoing as authorities work to satisfy agreed benchmarks. Development forecasts had been revised upward, and the fund signaled continued monetary assist tied to additional coverage steps.
IMF Notes Sooner Development
Studies be aware that progress is operating above earlier forecasts. The IMF now sees actual GDP progress close to 4% for 2025. Native information present the economic system expanded 5.1% within the third quarter of 2025 in contrast with the identical quarter a 12 months earlier, led by development and remittance-driven consumption.
Remittances and stronger funding flows had been cited as key drivers. The fund mentioned increased confidence and improved fiscal numbers have helped create area for short-term rebuilding of reserves.
Progressively, then out of the blue. https://t.co/MWP0avqlDE pic.twitter.com/hYYONaRLcI
— Nayib Bukele (@nayibbukele) December 22, 2025
A Program Backed By Clear Situations
Primarily based on IMF releases, a staff-level settlement was reached with El Salvador in December 2024 for a program value about $1.4 billion. That association units fiscal targets and governance measures meant to revive sustainability.
Earlier, when the IMF accomplished the primary evaluate and Article IV session in June 2025, a disbursement equal to roughly $118 million in SDRs was accepted. Studies added that authorities have enacted a brand new fiscal legislation, strengthened public procurement transparency, and superior governance measures for state companies.
Key Reforms And Situations
An actuarial research on pensions has been revealed, and steps to tighten anti-money-laundering guidelines had been mentioned with IMF employees. The fund has additionally pressed for limits on public sector publicity to cryptocurrencies; in accordance with worldwide protection, measures to scale back that publicity and to make personal crypto use voluntary are into account.
What Comes Subsequent For The Program
Based on IMF briefings, the second evaluate would require follow-through on prior actions and the assembly of fiscal targets. Continued disbursements rely upon progress, and IMF groups stay involved with Salvadoran authorities to work by way of excellent points.
In parallel, the IMF has reiterated its place on El Salvador’s Bitcoin coverage. Based on latest IMF statements, the fund desires the nation’s public sector Bitcoin holdings to stay capped, with no further purchases made beneath the present mortgage program.
The IMF has additionally pushed for a diminished state function in crypto-related actions, together with adjustments tied to the Chivo pockets, arguing that limits are wanted to comprise fiscal and monetary dangers. Salvadoran officers have mentioned Bitcoin stays a part of their technique, although IMF paperwork present no confirmed enhance in government-held Bitcoin since early 2025.
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